Victorian digital media support halved

May 06, 2010

The Games Developers' Association of Australia has described funding cuts to Film Victoria's successful Digital Media programs as "incredibly disappointing" and "a huge blow to the Victorian industry".

In Tuesday's budget, the Victorian Government announced that $1 million would be provided to Film Victoria to continue their Digital Media programs over the next two years.

But despite the Victorian Government describing games development as a "growing local industry with high commercial potential", the budget funding was only half the amount the Digital Media programs previously received.

Film Victoria has three programs to support the local interactive industry, including a digital media prototyping fund that offers games developers up to $500,000 to help develop a proof-of-concept prototype and attract a publisher. There is also a program that offers up to $8000 to develop cross-platform strategies and a scoping program that offers up to $5000 to enable producers to research the viability of digital projects.

Film Victoria's Digital Media Manager Brad Giblin yesterday declined to comment on the cut. But Antony Reed, CEO of the Games Developers' Association of Australia said "the news that Film Victoria's funding for the Digital Media programs has been cut by half is incredibly disappointing to the GDAA, and more importantly, a huge blow to the Victorian industry."

"Without question, Film Victoria has been a strong advocate for the creation and delivery of original content, offering programs that have allowed Victorian studios to develop games for a global audience which ultimately generate jobs for the local industry," said Mr Reed.

"The Film Victoria Digital Media Fund has enabled some of Victoria's most creative minds to develop truly unique concepts and directly encouraged the investment of millions of dollars into the Victorian game development industry."

Victoria boasts more than half of Australia's video games development industry, employing around 800 people at 20 studios. The industry began back in 1982 with Beam Software (Melbourne House) creating pioneering games like The Hobbit and Way of the Exploding Fist.

Three Victorian video game developers were recognised at the 2009 Governor of Victoria Export Awards in acknowledgment of the valuable export earnings they produce.

Many in the Australian games development community credit the Victorian Government's support of the industry as crucial to the state's leadership in the sector, although in recent years Queensland has been more pro-active and Brisbane-based studios like Krome and Halfbrick have grown significantly.

Mr Reed said the GDAA has regarded Film Victoria's Digital Media programs as "an example of effective and relevant government support, and we are at a loss to understand the rationale for the cutback".

"The news questions the Victorian government's future plans for the creative industries and this may provide an opportunity for neighbouring states to close the gap on Victoria's dominance in the game development sector," Mr Reed said.

One of the most successful Victorian developers, Puzzle Quest creators Infinite Interactive, has also expressed its disappointment in the funding cut, which comes hot on the heels of the economic downturn which forced the successful studio to shed staff.

"I am extremely disappointed to hear that Film Victoria's budget has been slashed," said Infinite's CEO Steve Fawkner. "After a very tough year for the Australian games industry, we need the government to show some support, not turn their backs on us like this."

Mr Fawkner says Film Victoria team does" a great job". "They have helped us commercialise a number of new titles. Their fund alone has created dozens of jobs in our studio, and helped us generate millions of dollars in retail sales."

"More importantly," added Mr Fawkner, "we've paid every cent back. The games industry isn't looking for handouts, we just want our government to help us in the same way that many overseas governments, such as Canada, do. To help us showcase our creative and technical talent to the rest of the world so that we can grow and eventually be competitive at the AAA level."

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Recent comments

death to nerds

May 06, 2010

09:11 AM

Fair enough. Do we really need 999999 more iphone games?

TSB

May 06, 2010

10:27 AM

Good stuff. We West Australians were getting tired of Victorians stealing our money to spend on games. Though I notice you're spending it on circuses instead - must be an election year. Anyone for bread?

ArghZombies

May 06, 2010

11:11 AM

The Australian games industry needs to start making games that appeal to the masses (particularly American masses) for the lowest common denominator (like MW2), make billions of dollars - and then make good games that might not necessarily sell well (which WILL sell well because its made by the gaming company that brought you "KillBots Vs MonkeyChickens")

I know its soul destroying, but that's business

singo the dingo

May 06, 2010

11:29 AM

Ya gotta spend money to make money - does anyone know what other state govts are putting into their digi media programs?

Anthony the Gourmet Gamer

May 06, 2010

12:01 PM

It's a shame, but the "turning their back" bit is a little bit dramatic. It's been slashed, not abolished.

It will mean that the industry will be more focused on the established players now though, given the real problem in Australia is that venture capitalists are cagey about anything that doesn't involve bricks or dirt.

@ArghZombies May 06, 2010 11:11 AM

We already do, it's just that no one realises it because it's all work-for-hire stuff where you barely get to see the studio name. Problem is that our dollar makes that business model pretty crap right now.

Jane's World

May 06, 2010

12:24 PM

If Film Victoria was truly committed to its Digital Media Programs and in being the country's leader in this field it would be looking at how it can supplement the budget for these programs. Surely there must be other programs that don't offer the same level of return or value for money that Film Victoria can cut?

Kermit

May 06, 2010

12:28 PM

"Surely there must be other programs that don't offer the same level of return or value for money that Film Victoria can cut?"

That's not how government funding works. You bid for money for specific projects and you either get your money for the project, some of it, or none. You can't then decide to spend it on something else.

RealityCheck

May 06, 2010

01:30 PM

So what are they funding with $2M that they can't fund with $1M?

Like DtN said, five or ten truly forgetable iPhone games don't see the light of day? Who cares?

Wall

May 06, 2010

03:30 PM

Government support is always nice when you can get it, but Jason and a few others said something very interesting some months back.

Once upon a time it was cheaper to develop (and for that matter, shoot films) in Australia beacuse it was cheaper for various reasons. That's simply not the case now and we need to prove ourselves as capable of the highest calibre of production. If we aren't, then unfortunately we don't deserve the business.

Government incentives or no, eventually some of the regional costs will disappear. 2K I think it is, uses great infrastructure between development and out-sourced houses to share assets and communicate across the globe. As those kinds of activities increase and prove profitable, I hope we'll see a market environment where a good developer can get work regardless of where they are.

Jason Hill

May 06, 2010

04:43 PM

There's some great games that have been funded by Film Victoria that might not have seen the light of day without the support. And there's some very exciting games on the way.

Interesting how the wonderful Puzzle Quest was done with private money but the incredibly inferior Galactrix had the tab picked up by the good people of Victoria.

Souri

May 06, 2010

06:11 PM

Screenhub is reporting that there's some confusion regarding game funding. One side says it has halved, the other says it has doubled...

"According to the Department of Environment, Climate Change and Innovation, the Victorian government has doubled its support for the Digital Media Fund administered by Film Victoria. According the Games Developers' Association of Australia, it has been halved. Someone is orbiting Pluto - but who?"

Jason says: There is no doubt it has been halved.

Jonathan Conway

May 06, 2010

07:59 PM

Where on earth is the fairness in the government subsidizing one particular industry, or one special interest? For any reason?

The government never had a right to give special favors to the media/games industry, or any other industry.

The government should exist as a policeman of a free market economy, not as some kind of thug who steals money from everyone, then dolls out rewards to a few select groups.

Harvey

May 07, 2010

07:13 AM

Bit surprised that many gamers here don't care. Even if you're not Victorian, you should be supportive of our governments supporting a creative industry that is export focused. Also, schemes like this are important in the legitimisation of games as a recognised artistic and cultural medium just like film, dance, opera, painting, creative writing, etc.

And as Fawkner says, the fund is about loans, not handouts. Helping to get projects off the ground so they can obtain publisher interest. Venture capitalists in Australia still don't get games, so funds like this are very important to help local studios turn a great idea into reality.

Not sure where the comments about a rash of iPhone games come from either. $500,000 can help make a reasonable prototype for the likes of 360, PC, PS3, Wii, etc.

Blurry

May 07, 2010

09:48 AM

@ Jonathan Conway

Ha...

Wait, that was sarcasm, right?

death to nerds

May 07, 2010

10:11 AM

@Harvey - 'Not sure where the comments about a rash of iPhone games come from either.'

It's because every time we get an interview with an indie developer they have always hit up the fund for $ and are always working on an iphone game.

anon

May 09, 2010

09:23 AM

@dtn

Those iphone indies are only hitting up the fund for small amounts. This cut is more likely to hurt the bigger studios.

crash

May 22, 2010

03:40 AM

I find it very interesting that a relatively new entrant to the CE industry, one that appears to have no real retail experience on either a supply or retail side would be in a position to make such misguided commentary about a fellow CE retailer falling over and then go to say that the "traditional retailer model" is antiquated, is extremely naive and unethical. The reality is that the newest technology being launched right now "3D TV" can ONLY be purchased from traditional retailers. And the main path of this persons attack was actually the first retailer in Aus to have 3D TV in store for consumers on a mass market level....So are his claims about Harvey Norman or other traditional retailers substanciated..i would say not! I would argue that new technology like 3D TV needs to be seen and experienced in a real sense snd that means in store in front of a consumer. i agree that once a product does become main stream then it could be made available online but the early adapoters are typically and also need to be retail stores (traditional retailers)

hashes

November 05, 2010

08:01 AM

Is Australia heading towards a Civil War?

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When posting comments on our blogs, you agree to be bound by our terms and conditions.
Comments that are offensive, defamatory, unsuitable or that breach any aspects of the terms and conditions will be deleted.

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